TBO Tek Limited IPO

TBO Tek, is offering an exciting opportunity for investors through its Initial Public Offering (IPO). 

The company aims to raise ₹1,550.81crores through the issuance of 1.68 crore shares. 

Lead Managers & Registrar: 

Axis Capital Limited, Jefferies India Private Limited, Goldman Sachs (India) Securities Private Limited and Jm Financial Limited are the book running lead managers, while Kfin Technologies Limited is the registrar for the issue.

About the Company 

TBO Tek Limited, formerly known as Tek Travels Private Ltd., is a leading player in the online travel distribution (OTD) space. Established in 2006, they have grown into a major facilitator of travel bookings, connecting travelers with a vast network of suppliers across the world.

TBO Tek operates a B2B travel distribution platform that acts as a marketplace for travel products and services. The company offers 

Extensive Inventory: They provide comprehensive travel inventory, encompassing hotels, flights, holiday packages, car rentals, airport transfers, cruises, freight services, and even global seaman fares.

Global Reach: Their platform connects over 159,000 travel agents and other buyers from more than 100 countries with over 1 million suppliers worldwide.

Multicurrency Support: TBO Tek caters to a global audience by offering support for a wide range of currencies, facilitating seamless travel booking experiences.

Forex Assistance: They even go beyond booking, providing forex assistance to their clients, making travel planning more convenient.

TBO Academy: TBO Tek emphasizes knowledge sharing through their TBO Academy platform, offering online resources and training programs for travel agents and partners.

Key Points about the IPO

Key financials (in ₹ Cr)

Performance Indicators

Key Strengths 

Market Leadership: TBO Tek boasts a prominent position in the travel distribution sector, particularly in terms of Gross Transaction Value (GTV) and operational revenue.

Technology-Driven Platform: Their robust technology platform facilitates efficient travel booking processes for both buyers and suppliers.

Focus on User Experience: TBO Tek prioritizes a user-friendly experience, making it easy for travel agents and partners to navigate the platform and access the information they need.

Diverse Service Portfolio: The wide range of travel products and services offered by TBO Tek caters to various travel needs and preferences.

Strong Financials: The company has shown impressive financial growth, experiencing a significant jump in revenue. 

Key Risks

Competition: The online travel distribution (OTD) sector is highly competitive. Established travel agencies and online travel giants (OTAs) like MakeMyTrip, Yatra, etc pose a significant threat to TBO Tek’s market share.

Economic Downturn: Economic slowdowns or recessions can lead to decreased travel spending, impacting TBO Tek’s business volume and profitability. Global economic factors and travel restrictions due to pandemics can further exacerbate this risk.

Fuel Price Fluctuations: Fluctuations in fuel prices can affect airline costs and potentially impact travel demand, indirectly impacting TBO Tek’s business.

Dependence on Technology: TBO Tek relies heavily on its technology platform for smooth operations. Any system outages, security breaches, or technical glitches could disrupt their services and damage their reputation.

Supplier and Buyer Concentration: While TBO Tek boasts a vast network, their reliance on a limited number of large suppliers or buyers could pose a risk. If key partners decide to switch platforms, it could significantly impact their revenue.

Regulatory Landscape: The travel industry is subject to various regulations related to consumer protection, data privacy, and security. Changes in regulations or compliance issues could necessitate adaptations to their platform and potentially increase operational costs.